The Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Nigeria Deposit Insurance Corporation (NDIC) have teamed up to simplify the bank recapitalisation process, with the goal of enhancing efficiency and transparency in the financial sector.
In a recent statement, SEC Director General Emomotimi Agama highlighted that this collaboration is part of a broader initiative to reduce the time required for capital-raising activities, making the Nigerian capital market more appealing to both investors and issuers.
Agama detailed several measures that have been implemented, including the introduction of an electronic filing system, streamlined registration processes, and updated regulatory frameworks. These efforts are aimed at increasing market liquidity by enabling companies to access capital more swiftly and effectively.
He noted that the CBN, SEC, and NDIC are working closely to ensure banks can seamlessly raise capital during the recapitalisation period, in line with the new framework issued by the SEC in June 2024. This framework provides clear guidelines and procedures for banks to follow, ensuring a smooth and transparent process.
A key feature of this initiative is the mandatory use of an e-offering platform, designed to enhance the recapitalisation programme’s efficiency by providing a comprehensive solution for offering, subscription, and payment processes. According to Agama, this digital approach will eliminate issues like multiple identities, reduce unclaimed dividends, and accelerate the overall process, benefiting both companies and investors.
A joint team of representatives from the CBN, SEC, and NDIC has been established to oversee the recapitalisation programme, particularly focusing on capital verification, a crucial step for allotment clearance.
Expressing satisfaction with the progress so far, Agama assured that the SEC is committed to unlocking the full potential of the Nigerian capital market. He emphasised that these ongoing reforms align with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which aims to drive economic growth and development.
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“We are dedicated to ensuring that the capital market is well-positioned to contribute to Nigeria’s economic development. Time to market will remain a key focus, and we will continue refining our processes to ensure swift approvals for issuances,” Agama concluded.
